How Successful Leaders Think Presented by: Frank Yang Article by: Roger Martin
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Introduction • Many believes we can achieve same result if we emulate leaders actions. • However, what a leader does is misplaced because what works for one often make little sense in another. • Focus on how a leader thinks to examine ways they produce their actions
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Red Hat - Linux Business Model 1: Employed by Big Players (Microsoft Oracle and SAP)
Fixed Profit Margin
Business Model 2: Employed by Small companies free-software model
Narrow and Uncertain Revenue
Needs Sales Grow
Bob Young’s Decision New Business Model: Create Linux Operating System Market
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Four Seasons Business Model 1: Build small motels with family orientated but limited facilities Expansion Business Model 2: Build large convention hotels with large facilities but cold feeling Isadore Sharp’s Decision New Business Model: Medium size luxury hotel with services with facilities
Premium price and sub-scaled
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Summary • In our minds avoid complexity and ambiguity • In our mind, we are forced to determine which model is right, and by process of elimination. • Young and Sharp refused to settle either-or choice • Young and Sharp concluded, “We weren’t going to win if it were an ‘or’. Everybody can do ‘or’.”” • Young and Sharp are considered integrative thinkers
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Conventional vs Integrative Conventional Thinker
Integrative Thinker
Seeks simplicity
Welcome Complexity
Forced to make unattractive trade-offs
Create Innovative Solutions 6
Conventional Vs. Integrative 4 Stage of Decision Making
Identify Key Factors
Analyzing Causality (Cause and effect)
Envisioning the Decision’s overall structure (Sequencing)
Achieving Resolution
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Identify Key factors • Focus only on Conventional obviously Thinker relevant features
Integrative Thinker
• Seek less obvious but potentially relevant factors
• Financial Departments regard emotional factors • When bad decision is made, we failed to consider factors outside of the job • Integrative thinkers welcome complexity and ensure nothing is missed
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Analyzing causality Conventional Thinker
Integrative Thinker
• One way linear Relationship • More A produces more B
• Multidirectional and nonlinear relationship
• Managers preferred linear relationship because of simplicity • When bad decision is made, we fail to determine variables relationship • Integrative thinkers think how it influences other rivals variables 9
Envisioning the decision’s overall structure Conventional Thinker • Divide the problem and work separately Integrative Thinker • See problem as a whole and understand how each parts fit and affect each other
• Business issue delegates independent sections to different departments • Lose sight of the main issue and purpose • Integrative thinker sees the entire architecture of the problem and how they fit together
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Achieving Resolution Conventional Thinker
Integrative Thinker
• Make either or choices • Settle for best available options
• Resolve tensions among opposing ideas • Generate innovative outcomes
• Accept an unpleasant trade off with little complaint • Ignore opportunities in the previous 3 steps to discover new trade offs • Conventional thinker will ask, “What else could we have done?” • Integrative thinker refuse unpleasant trade off by • Delay and send back for new options • Start over the decision making process • Create new option
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Conclusion • We are trained to examine the pros and cons of alternatives and pick one of them • However, real successful businesspeople response, “I don’t like either one.” because they don’t accept that it’s an ‘eitheror’
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Conclusion • Conventional thinker: Accept the world • All model they see are true reality • If is it not true reality, it is wrong • Therefore, no better model could exist
• Integrative thinker: Challenge the world • All models are not true reality • Other opposing model can be leveraged • Better model exist that are not yet seen
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Conclusion • How to change from conventional to integrative? • If we treat integrative thinker as a concept, integrative thinker is just “A Habit of Thought”
• “The secret to becoming a great leader? Don’t act like one, Martin advises. Instead think like one.”
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Thank You
http://frankyang.ca
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